What is the MIP Rate typically expressed as a percentage?

The correct answer reflects the typical mortgage insurance premium (MIP) rate for FHA loans, which is commonly expressed as a percentage of the loan amount. In the context of FHA loans, the MIP helps provide insurance protection to lenders against potential losses from borrower defaults. A rate of 1.35% is standard for many FHA loan products, although it may vary based on factors like the loan term and down payment.

When considering the other percentages, they either reflect rates from different loan products, variations over time, or specific cases not applicable to the general standard for FHA loans. Understanding this context emphasizes the importance of knowing specific MIP rates as they can significantly impact a borrower's monthly payments and total loan costs.